Maybe the procedures for setting up a business in Spain as a foreign entrepreneur are becoming overwhelming for you, and its normal: you need time to get familiar with the Spanish legal and tax systems in order to manage them. Nevertheless, setting up a business in Spain can be a great opportunity for non-residents. We are going to review the problems than can arise in this situation and how to solve them. Spain is not just a holiday destination, it is also a country with great chances for foreign investors because of a series of differentiating factors:
- Lower tax burden
- Legal procedures to operate in Spain are quite simple
- The economic growth experienced by our country in the last few years
- The strategic situation of the country as a connection point with Africa and Latin America
- Excellent communications and structures
- Means of transport (planes, high speed trains, buses etc.)
- Good climate
- In Spain entrepreneurship is growing. In fact, according to the Spain 2018 GEM Report there are 6 early-stage entrepreneurs for every hundred adult people. The entrepreneurial rate was 6.2% in 2017.
Setting up a business in Spain without obstacles
The goal of our business consultancy is to make it easier for you to manage all the procedures for setting up a business in Spain as a foreign entrepreneur. So why we are going to review the 5 most usual problems and provide you with the solutions we offer our foreign clients:
You do not want to travel to Spain
A travel to Spain requires time and effort that you need to save for your business, so you have two options: hire a Spanish worker or empower a legal and tax representative in Spain (he or she will have to be a resident and have his or her tax residence in Spain) who will carry out all the formalities and procedures.
The advantages of hiring a service of legal and tax representative in Spain are the following:
- It requires less investment, as he or she will not have to travel and procedures will be carried out more quickly
- You will be supported by a professional team with experience in advising foreign companies that wish to operate in Spain.
- You will be able to focus in your business: there will be professional experts (who are familiar with Spanish regulations and institutions) working for you.
- They will talk to you in English: communication will be fluid, and procedures will get easier and quicker.
You do not wish to set up a branch or subsidiary company in Spain
Maybe you want to start operating in Spain ASAP without setting up a branch or subsidiary company. You can do it by applying for a non-resident CIF with the aid of a legal and tax representative.
The application must be done through models 039 (Tax register declaration for registration in the taxpayers’ tax register, change of address and/or change of personal details) and 036 (Tax register declaration for registration, change and de-registration from the entrepreneurs’, professionals’ and withholders’ register).
- Document establishing the existence of the non-resident company (statutes, articles of association, certification from a notary or public register).
- Power of attorney with which the foreign company empowers a resident in Spain who will be their tax and legal representative.
- Certification of Registration in the Mercantile Register in which the foreign company’s managers are identified.
- NIE of the legal representative in Spain.
The documentation must be translated by a sworn translator and filled in with the Apostille of Le Hague or other legalization.
The following data must also be provided:
- If the foreign company has legal status or not
- Corporate name
- Tax identification number in the country of residence
- Tax residence
- Date of constitution and registration in the corresponding public register
- Share capital at the time of the constitution
- Representatives’ personal information (personal or business name, tax identification number, address etc.)
You do not have a bank account in Spain and do not wish to open one
To operate and do business in Spain you need to have a bank account, as you need to make payments and receiving revenues. If you do not want to open one we put at your disposal our cash handling services, the perfect solution for foreign investors like you that want to open a company in Spain without fear of malpractice… and not too many headaches.
With this service you will be able to charge your customers and make payments to providers, to the Spanish Tax Agency, to the Social Security and/or to your employees. This formula is commonly used before setting up a business in Spain, in order to start operating as soon as possible.
The operational ABC is as follows:
- First you hire LEIALTA’s cash handling service.
- We agree on a payment schedule.
- You transfer the money to make the payments to a bank account that we will open for you.
- We will make the payments and keep you informed.
You are not familiar with tax commitments in Spain
A lack of knowledge of the tax commitments of foreign companies is not an obstacle for setting up a business in Spain as a foreign entrepreneur. You will be supported by an expert local consultant from Leialta that will advise you in English and whenever you need, about:
- The legal forms a company can adopt (subsidiary or branch company, limited company or stock corporation).
- The tax commitments you must fulfill (filing in the VAT, IRPF and IS).
- Any commitments related to hiring staff (social security, payment of IRPF withholdings, prevention of occupational risks etc.).
You do not want to have different providers
Coordinating different providers from abroad can be tricky. With Leialta you will enjoy a comprehensive service, so there will be a single interlocutor for everything you need when setting up a business in Spain.
The advantages provided are:
- You will be able to focus on tour business.
- You will save time and money.
- All the information related to your business in Spain will be centralized.
- All the professionals involved in the procedures will be coordinated too.
Contact us if you are thinking of setting up a business in Spain as a foreign entrepreneur and we will provide you with the best solutions.